To turbo charge our home-grown defence industry, the Australian Government is seeking proposals from Australia's private capital market for potential co-investments in local industry.
The Albanese Government has dramatically increased funding for our defence force and we are making record investments in our defence industry.
To further drive growth and innovation in Australia's defence industry, the Government is seeking proposals from the private capital market to co-invest in Australian businesses developing defence and dual‑use advanced capabilities.
These investments will target the advanced capabilities and exports of tomorrow, including cyber, artificial intelligence and autonomy, electronic warfare, quantum technologies, and undersea warfare.
Investing in advanced capabilities that have export potential helps build a bigger defence industry and supply chain, that's more resilient and better for local businesses.
The Request for Expressions of Interest is now open on AusTender to identify one or more suitable private capital partner/s to potentially manage the investment.
The size of investment that may be considered would be for a co-contribution of up to $500 million from the Government, with the decision to invest and final terms, to be determined in partnership with the successful fund manager/s and subject to further Government consideration.
Once selected by Defence, the successful firm or firms will work with Government to develop the investment proposal further for the Government's consideration.
This initiative reflects the Government's commitment, as outlined in the 2024 Defence Industry Development Strategy, to work with venture capital fund managers and other investors to explore opportunities for private capital investment in Australian businesses developing critical defence capabilities.
Quotes attributable to Minister for Defence Industry, Pat Conroy:
"Australia's current strategic environment tells us that we need to do all we can to drive investment in new capabilities.
"Joint investment between the government and private sector has enormous potential to further unlock Australian jobs and innovation.
"In developing potential options for co-investment, the government is looking for ways to catalyse growth of Australia's innovation ecosystem, sovereign industry capability and exports potential, all while putting money back into Australian pockets.
"The Government will explore options to partner with private capital to invest in eligible Australian small and medium enterprises that are developing the capabilities we need."
